Using 1031 cash then refi

[Cheryl Russell]

I am selling a property for $327,600 through a 1031 exchange and have contracted to buy another at $199,950. Originally I had planned to use the remaining money to get out from under some short term business debts from purchasing a company. I know I will have to pay capital gains tax at 15% on this amount, but that is still significantly less than the interest I will owe on the debt. 

After doing some looking around though I have found a second property that would like to have (the numbers work for finiancing and cash flow), and am considering using the 1031 cash to purchase, then turn around and refi at 70% LTV, use the refi money to pay off the debt, then let the property cash flow handle the mortgage.

We have adequate income and reserves to protect us from issues with the property, I'm just looking to free up our personal income while placing our money to work for us instead of someone else. 

Is there a period of time you have to wait before purchase and refi when the purchase was 100% cash? I realize the appraisal may not come back at exactly what we want, but that's a risk we are able to handle. Thoughts?